Mascoma Corporation, a renewable fuels company, has signed a cooperative agreement with the U.S. Department of Energy to assist in the design, construction and operation of a commercial-scale hardwood cellulosic ethanol facility in Kinross, Michigan. The cooperative agreement provides for up to USD 80 million in DOE funding, in addition to the USD 20 million in funding previously awarded by the DOE related to research and development for this project. This contract includes a cost-sharing arrangement under which the DOE will contribute to the expenses for construction of the Kinross facility, and the balance of the construction costs will be funded by Valero Energy Corporation and a grant from the State of Michigan.
Bill Brady, President and CEO of Mascoma, had this to say regarding the deal: “This DOE award is a significant milestone for Mascoma, and the biofuels industry, as it completes the financing for the development and construction of a first-of-its-kind 20 million gallon per year cellulosic ethanol facility in Kinross. We are excited to apply our proprietary consolidated bioprocessing (CBP) technology platform to produce cellulosic ethanol on a commercial scale and thereby provide a low-cost, sustainable alternative to petroleum-based products.”
The Kinross facility will use Mascoma’s proprietary CBP technology platform to convert hardwood pulpwood into ethanol. Hardwood pulpwood is a selectively harvested, naturally regenerated feedstock; it is also an abundant resource in the surrounding area. Construction of the Kinross facility is expected to begin in the next three to six months with completion expected by year-end 2013. Kinross Cellulosic Ethanol LLC, a joint venture formed by Mascoma and Valero, will develop and operate the Kinross facility.